Finding great employees takes work, but so does keeping them. Once you have gone through the arduous and costly process of finding an employee who is perfect for your company, have a plan in place to keep them. Your retention plan should start with competitive compensation and benefits, but keeping top people takes more. Organizations need a pleasant, positive work environment with open communication channels, employee appreciation and recognition plans, and opportunities for professional development.
Each time a company must replace someone, it incurs further costs for advertising, interviewing, selecting a candidate, and then onboarding and training them. Turnover also lowers morale, interrupts business efficiency, and interferes with customer or client experiences. Being understaffed can make everyone’s job more difficult and mean customers wait longer for service.
Compensation and Benefits
Obviously, paying a competitive wage matters but company-paid benefits often matter more to team members. Health insurance, paid leave, and retirement funds all support retention, but there has been an increase in a desire for other well-being-connected benefits. Investing in employee well-being as part of a positive company culture is well worth any extra cost. Physically and mentally healthy team members can bring their best selves to work and feel good about working towards personal and company goals.
There are several ways employers can support their employees’ health and fitness. For example, companies that have in-house workout facilities, provide or pay part of gym memberships, or encourage walking breaks for office staff demonstrate their interest in keeping employees fit. Organizations that offer good health insurance plans and have policies to encourage regular medical checkups, screenings, and vaccinations have healthier team members who are more likely to stay on.
In addition, companies can support mental and emotional health through better work-life balance, mental health awareness campaigns, and support for anyone struggling with addiction, stressful situations at home, or mental health challenges. As part of emotional health support, some companies even help team members develop better personal financial management skills. Money troubles can contribute to anxiety and depression, so giving people tools to manage finances helps prevent these.
Everyday Employee Appreciation
Everyone needs to feel appreciated and companies have different approaches to showing team members they value them. Most start with a positive work atmosphere and open communication lines. Employees who feel comfortable voicing concerns or ideas leave less readily. When everyone’s ideas and suggestions are encouraged, work is more collaborative and less competitive. Companies that create and maintain a cooperative atmosphere with everyone working together towards common goals keep staff longer.
Companies can also sponsor activities that reinforce the company’s positive feelings toward their team members. Whether it’s pizza delivered for lunch every Friday or an annual bowling tournament or softball game between management and employees, a little fun goes a long way toward building team morale. Holiday and family events are great, too. Picnics, photo contests, employee art exhibits, and talent shows are all good possibilities. Which activities to choose will depend on your team member’s interests.
Create a Meaningful Appreciation Program
Beyond the everyday expressions of appreciation, companies should have planned, formal employee recognition programs. Understanding the psychology behind recognition can be the key to building a successful program.
In 1943, Abraham Maslow published Maslow’s hierarchy of needs. It showed that after basic requirements, food, water, shelter, and safety, people’s needs turn to social requirements for inclusion, belonging, esteem, and self-actualization. In other words, people need to feel they are being their best selves, belong to a group, and are appreciated.
Recognition programs have historically been based primarily on years of service benchmarks. Celebrating work anniversaries is great, but smart companies also recognize their people for individual accomplishments and personal milestones. Employees want to be seen and appreciated as individuals. That means companies should recognize someone for completing a leadership course, receiving a promotion, participating in community outreach, or winning a local bicycle race.
However, people also want to feel like they belong, so recognizing a team for finishing a project ahead of schedule or winning the company fundraising competition fills that need. Celebrating company accomplishments counts, too. When companies have banner years, complete projects successfully, ahead of schedule, or on budget, everyone involved should be celebrated. Everyone has contributed to the company’s success, so all team members should be recognized and commended.
Continued Education and Professional Development
Organizations that encourage their people to continue learning show they value education and understand the self-actualization need. Companies that provide the means to continuing education and professional development attract top candidates and keep them longer. An article in Entrepreneur says that 87% of millennials think of continued professional development as essential. It also explains that 76% of those surveyed find a company offering training more appealing.
Candidates looking for opportunities to grow and improve are the ones companies want to hire. Applicants looking for opportunities to continue professional development are the ones who wish to do their best work. Technology constantly changes today, and trained people can take advantage of the advancements and be more innovative and productive. Providing learning opportunities also provides a company with a reliable pool of future team leaders and managers.
Companies don’t need to limit learning opportunities to work skills and professional development. Team members who value life-long learning and develop healthy outside passions and pastimes are mentally healthier and happier. Learning to knit, box, or do yoga doesn’t provide job skills but promotes a better work-life balance, which helps everyone work more efficiently.
Keeping the Great People You Have
After spending time and resources finding and hiring a great candidate, a company should have a plan in place to keep them onboard for as long as possible. Today, people want good salaries but look for more than income when they accept a position. They want the usual benefits like health insurance and a retirement plan, but other perks like educational opportunities and better work-life balance matter, too. Companies sometimes overlook an important need for people to feel appreciated and valued. A hard-working, dedicated employee burns out fast if their efforts aren’t recognized. Keeping human needs for inclusion, belonging, esteem, and self-actualization will help design an effective employee retention initiative.